Rose Blumkin

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Rose Blumkin (December 3, 1893 – August 9, 1998) founded the Nebraska Furniture Mart in 1937.[1] She was a renowned businesswoman. Warren Buffett said of her, "One question I always ask myself in appraising a business is how I would like, assuming I had ample capital and skilled personnel, to compete with it. I’d rather wrestle grizzlies than compete with Mrs. B and her progeny. They buy brilliantly, they operate at expense ratios competitors don’t even dream about, and they then pass on to their customers much of the savings.[2]

Her credo, according to her obituary in the New York Times was "Sell cheap, tell the truth, don't cheat nobody."[1]

Early life[]

Blumkin was born in 1893 as Rosa Gorelick to a Jewish family[3] in Schedrin, a village near Babruysk in present day Belarus. She was one of eight children of Solomon and Chasya Gorelick. Her father was a rabbi and her mother ran a grocery store.[1] When she was twenty, Rose married Izya (Isadore) Blumkin.

Blumkin immigrated to the United States in 1917. She could not speak English.[2] In 1919, she moved to Omaha, Nebraska, where the Blumkins started a used clothing store.[1]

Career[]

Blumkin opened the Nebraska Furniture Mart in 1937, selling used furniture.[4] Known as "Mrs. B.", she was in her mid-40s when she opened the business in the basement of her husband's store with an investment of $500.[5]

Blumkin grew the business to become the largest indoor furniture store in America. This caught the attention of Warren Buffett. In 1983, the year Buffett's company purchased a 90% share of the Nebraska Furniture Mart for $60 million.[4][2]

In 1989, six years after selling 90% of her company to Berkshire Hathaway, Blumkin retired, only to come out of retirement in three months to open up a rival store. It was called "Mrs. B's Clearance and Factory Outlet" and was situated directly across the street from the Furniture Mart. It became profitable by 1991.[1] Buffett acquired the business in 1992.[1] Blumkin continued to be involved in day-to-day operations until shortly before her death at the age of 104.

Recognition[]

Blumkin was active as a philanthropist.[6] The Rose Blumkin Performing Arts Center is named for her. She was also a large donor to the Omaha Jewish Community Center. She received honorary degrees from New York University and Creighton University.[7]

Death[]

Blumkin is buried in the Golden Hill Jewish Cemetery.

References[]

  1. ^ Jump up to: a b c d e f Feder, Barnaby J. (August 13, 1998). "Rose Blumkin, Retail Queen, Dies at 104". The New York Times. Archived from the original on February 3, 2017. Retrieved February 3, 2017.
  2. ^ Jump up to: a b c Buffett, Warren (1984-03-14). "Warren Buffett's 1983 letter to Berkshire Hathaway shareholders". Berkshire Hathaway. Retrieved 2020-05-26.
  3. ^ "Jewish Heroes and Heroines in America". Retrieved 5 May 2015.
  4. ^ Jump up to: a b Schroeder, Alice (2009). The Snowball: Warren Buffett and the Business of Life. A&C Black. ISBN 9781408807323.
  5. ^ Fox, Michelle (2019-03-01). "Warren Buffett's model for aspiring business managers — a retail legend known as 'Mrs. B'". CNBC. Retrieved 2020-04-06.
  6. ^ Briggs, Roy (1997). "Oral History Interview. Interviewer Roy Briggs; Interviewee Rose Blumkin". Home Furnishings Hall of Fame. Retrieved 2020-05-26.
  7. ^ Linder, Karen (2012). The women of Berkshire Hathaway lessons from Warren Buffett's female CEOs and directors. Hoboken, N.J.: Wiley. ISBN 9781118227411.

External links[]

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